December 12, 2017

Hill introduces GSE Jumpstart Reauthorization Act

Representative French Hill (R-Ark) has introduced the GSE Jumpstart Reauthorization Act of 2017 (H.R. 4560), which would extend an existing prohibition while preventing the Treasury Department from selling its government-sponsored enterprise preferred shares, according to Hill’s press release. The bill would also require government sponsored enterprises Fannie Mae and Freddie Mac to pay dividends to the Treasury Department prior to making payments to the Housing Trust Fund for that year.

According to Hill, “The U.S. Treasury still backs the GSEs with a line of credit standing at over $250 billion and, while Fannie and Freddie remain in conservatorship, the taxpayers continue to be on the hook. Rather than increasing taxpayer exposure by withholding money, it is time to mandate that the GSEs pay their bills to taxpayers before growing this Trust Fund.”